Servers: at least 12 states and DF give readjustments – 05/31/2023 – Market

At least 12 states and the Federal District have already announced or approved linear adjustments for civil servants in 2023 (see the list below).

In general, the recompositions seek to keep up with inflation and occur despite the tightness in finances that challenges the federative units.

Even so, there is dissatisfaction among state public servants who had dammed increases. They charge higher readjustments this year.

The states’ cash has been pressured by the lower generation of revenues, in a scenario of losses with the changes in the collection of ICMS (Tax on Circulation of Goods and Services). The tribute is the main source of revenue for the states of the federation.

On the eve of the 2022 elections, a law placed limits on the collection of ICMS on products and services such as fuel and electricity. The measure of the Jair Bolsonaro (PL) government sought to lower prices in the midst of the electoral race.

“This reduction in revenue is directly linked to the changes we had in the ICMS”, says Livio Ribeiro, a partner at BRCG consulting and an associate researcher at FGV Ibre (Brazilian Institute of Economics of the Getulio Vargas Foundation).

According to a panel updated by Confaz (National Council for Finance Policy), the collection of state taxes (ICMS, IPVA and others) was R$ 278.8 billion in the period from January to April of this year. The number is equivalent to a decrease of 2.6% compared to the same period in 2022.

In addition to the ICMS changes, the reduction in the prices of commodities such as oil and iron ore and the slowdown in economic activity also play against the tax collection of the states, according to Ribeiro.

“On the side of the states, the revenue situation has worsened. Looking ahead, the contraction may even lessen. But a major recovery in revenue generation seems unlikely,” he says.

In early June, a new change in the model for charging ICMS on products such as gasoline takes effect, which now has a single rate in reais per liter in all states and the Federal District. A stimulus to the cash flow of the Federation Units and pressure on prices at pumps in 22 states and the Federal District is expected.

“The demand for readjustments exists, and in many cases it is worthy, but it has to fit into reality. It cannot be done in a hasty way”, says Ribeiro.

Among the 27 units of the federation, all consulted by the Sheetat least 12 states and the Federal District have already announced or approved linear readjustments in 2023.

Another 11 states are experiencing different situations – from those that gave increases to specific categories to those that are still studying or discarding linear adjustments for the time being.

Three states did not comment on the subject after contacting the report (Pará, Rio Grande do Norte and Rondônia).

One of the undefined states is São Paulo. The Tarcísio de Freitas government (Republicans) claims that it is working on a proposal for a salary adjustment for all civil servants in 2023. However, it has not yet sent a project to the Legislative Assembly of the State of São Paulo.

“What I can say is that we are going to have a real gain for the entire civil service, something above inflation”, said the governor in an interview last week.

While public servants are waiting, last week a specific salary increase for the security forces was approved, with an estimated impact of R$ 2.5 billion.

There is also uncertainty in Minas Gerais. The Romeu Zema (Novo) government claims to be within the prudential limit of the LRF (Fiscal Responsibility Law) and that, therefore, it would only be possible to grant this year a recomposition of inflationary losses.

“This definition still depends, however, on guaranteeing the availability of cash that makes payment possible, which is under analysis by the Executive Branch”, says the government, in a note.

In Santa Catarina, the Jorginho Mello (PL) government has no readjustment forecast for civil servants on the horizon and signals concern about the drop in revenue and the increase in spending on functionalism last year.

The state launched the Santa Catarina Fiscal Adjustment Plan, which, among other measures, suspends readjustments for civil servants between May 1, 2023 and May 1, 2024.

There is also no prediction of a linear readjustment in Rio Grande do Sul. The Eduardo Leite government (PSDB) argues that the fall in revenue increased the share of spending on salaries from 41.3% to 47.8% of net current revenue, exceeding the prudential limit provided for in the Fiscal Responsibility Law, of 46.5 %.

A change in understanding would involve an increase in revenue, which is not foreseen in the near future. The Gaucho government, however, last April granted a 9.45% readjustment to teachers, adjusting salaries to the national floor for the category.

In Bahia, Governor Jerônimo Rodrigues (PT) sent a linear adjustment of 4% to the 270,000 state employees, including pensioners, retirees and professionals with temporary contracts.

The proposal was approved by the Legislative Assembly after protests from civil servants, who were demanding a 9% increase. The readjustments will have an impact of R$ 1.3 billion on state coffers.

The following week, however, the servers had a setback: the government increased by 4% and 8%, depending on the salary, the contribution of the servers to Planserv, the health plan for the servers.

In Acre, the Gladson Cameli (PP) government granted a general increase of 20.32%, which will be applied in four annual installments of 5.08%.

In the Federal District, Governor Ibaneis Rocha (MDB) sanctioned a similar bill, readjusting public servants’ salaries by 18%. The linear increase will be applied in three stages, with a 6% readjustment each year.

Locations with linear readjustments

Acre

• Governor Gladson Cameli (PP) granted a general readjustment of 20.32%, which will be applied in four annual installments of 5.08%, starting in June this year, for all active and inactive workers and state pensioners.

Amapá

• The Government of Amapá, headed by Clécio Luís (Solidariedade), granted a linear readjustment of 5.6% to active and inactive civil servants. The measure is retroactive to the April payment.

bahia

• Governor Jerônimo Rodrigues (PT) granted a linear readjustment of 4% for state employees. An additional increase was also approved for teachers with salaries below the National Education Floor of R$ 4,400.

Ceará

• The Elmano de Freitas (PT) government announced a 5.8% readjustment for civil servants, guaranteeing the replacement of inflation. The adjustment is also extended to food vouchers received by categories.

Federal District

• Governor Ibaneis Rocha (MDB) sanctioned a bill readjusting civil servants’ salaries by 18%. The linear increase must be applied in three stages, with a payment of 6% each year, reaching the proposed total of 18% in 2025.

Holy Spirit

• Civil servants in Espírito Santo received a linear readjustment of 5% in April, in a project forwarded by Governor Renato Casagrande (PSB).

Goias

• On May 25, Governor Ronaldo Caiado (União Brasil) sanctioned a 5.93% readjustment for state civil servants and the adaptation of teachers’ salaries to the new National Salary Floor.

Mato Grosso

• The Government of Mato Grosso, commanded by Mauro Mendes (União Brasil), informed that in January of this year it granted a linear readjustment of 5.79% to all state public servants.

Mato Grosso do Sul

• Governor Eduardo Riedel (PSDB) granted an annual general adjustment of 5% to effective civil servants. The law was sanctioned on the 17th, with effect from the 1st of May.

Paraná

• The Ratinho Júnior government (PSD) has not yet forwarded the readjustment project to the Legislative Assembly, but anticipates that it should propose a general readjustment of 5.79%. It should also propose career restructuring, with salary impact.

Rio de Janeiro

• The Government of Rio de Janeiro, led by Claudio Castro (PL), granted active, inactive and pensioners, in January 2023, a salary recovery of 5.9%.

sergipe

• The Fábio Mitidieri (PSD) government granted a 10% readjustment to public servants who are part of the Positions, Career and Wages Plan, a measure that reached around 19,000 civil servants. For other state servants, the readjustment applied was 2.5%.

Tocantins

• The Government of Tocantins granted an adjustment of 5.93% in the base date for all categories, including commissioned positions.

Other cases

Alagoas

• The Government of Alagoas has not yet granted an adjustment. The state administration states that it is in “the payroll and collection study phase”.

amazon

• The Government of Amazonas says that it carries out studies for the granting of readjustments of base dates, progressions and promotions for categories of areas such as education, health and security, according to budget availability.

Maranhao

• The State Secretariat for the Management, Assets and Assistance of Public Servants states that it is gathering information about the careers of state civil servants, valid competitions, appointments made and vacant positions in order to study the impact of readjustments. The folder says that, in 2023, there was a salary adjustment of 11% granted to teachers in the state public network.

Minas Gerais

• The Romeu Zema (Novo) government claims to be within the prudential limit of the Fiscal Responsibility Law and indicates that it is still evaluating a possible wage recomposition of inflationary losses.

Paraíba

• Governor João Azevedo (PSB) did not report on a possible linear readjustment to servers. The government says it has updated the minimum wage for civil servants to R$1,302 since January. In a note, the Paraíba administration states that the national level of teaching and nursing has also been implemented.

Pernambuco

• The Government of Pernambuco, led by Raquel Lyra (PSDB), has not yet defined a readjustment policy for state public servants in relation to 2023, except for compliance with the value of the national salary floor for teachers.

Piauí

The Rafael Fonteles (PT) government states that it plans an evaluation to be carried out in the second half of 2023 to check whether it will be able to grant an increase this year.

Rio Grande do Sul

• The Eduardo Leite government (PSDB) ruled out a linear increase for civil servants in 2023. The argument is that the fall in revenue increased the commitment of revenue to salaries from 41.3% to 47.8%, exceeding the prudential limit provided for in the Law of Fiscal Responsibility.

roraima

• The Antonio Denarium (PP) government declares that, in 2023, it is studying ways to enable a salary replacement for civil servants, considering the impact suffered with the drop in revenue.

Santa Catarina

• In Santa Catarina, the Jorginho Mello (PL) government has no readjustment forecast for servers on the horizon. The state launched a plan that, among other measures, suspends readjustments for functionalism between May 1, 2023 and May 1, 2024.

São Paulo

• In São Paulo, the government of Tarcísio de Freitas (Republicans) says that it is working on a proposal for a salary adjustment for all civil servants in 2023. According to the state, the impact of the measure will be disclosed after the studies are completed and sent for approval. at Alesp (Legislative Assembly of the State of São Paulo).
• Last week, a salary increase aimed at security forces was approved, and the impact this year is estimated at R$ 2.5 billion.
• “This valuation considers the maintenance of the state’s fiscal sustainability, since personnel expenses are below the limit established by the LRF (Fiscal Responsibility Law),” informs the state government, through a note.